Research On The Bidding Strategy Of Construction Project Under Uncertain Environment

With m ore frequent foreign exchange s after our country joins W TO, theconstruction firms in China are no w facing the unprecedented com petition pressure.To win an ideal p roject in a fierce m arket，the construction firm must possess bothgood business capability and th e ability to take the ri ght strategy dur ing biddingdecision-making. Exploring bidding strategy has great significance in both theory andpractice. For a right and reasonable bidding decision is not only important for winningthe bidding, but also helpful for the real ization of economic benefits and businessstrategy of the com pany. Based on uncertain theory, risk assessm ent theory, fuzzycomprehensive assessment theory and DEA cross-evaluation method, this dissertationconducts a system atic study on the two topics during the process of biddingdecision-making in construction industry: Bid/No-Bid Decision and Which Project toBid.1. Based on the relevant literature, risk index of the bidding strategy are analyzedand classified in a statistical m ethod, and five m ost i mportant factors of projectbidding worthy of considering in our country are summed up as below:①Thecontractors’ own situation;②The competitors’ situation;③The owners’ situation;④The local situation of the project;⑤The situation of the project.2. ABid/No-Bid strategy m ethod is proposed based on fuzzy risk assessm ent.Firstly, an initial risk equivalen ceR0is set up, then the risk equivalence of thebiding project is calculated accord ing to the model. This ris k equivalence is thencompared withR0to determine whether to bid or not. Under the circum stances ofthe low inf ormatization level in th e current do mestic construction market and thedifficulties in getting su fficient historical data, this m ethod opens up a new way forsolving the problems of project bidding. Fina lly, the feasibility and practicability ofthe method are verified through examples.3. According to the bidding decision index system of the construction project andthe fuzzy theory, the evaluati on is divided into five grad es: poor, difference, general,good and great. Then, based on cross-eval uation and fuzzy theory, the decisionmaking m ethod for construction projects sele ction is proposed to explore “W hich Project to Bid”. Using DEA cross-evaluation theory, the result shows that this methodcan well reduce the subjectivity of the expe rts’ evaluation and we ight and provide amore objective and effective reference for project selection.4. There are both objective data and subjective factors in project evaluation, so itis hard for decis ion-makers to m ake accurate assessment. Using the idea of DEAcross-evaluation for reference, th is m ethod processes th e quantitativ e data withcross-evaluation m ethod. Based on cross-evaluation, fuzzy m embership degreeevaluation model for construction project selection is constructed.5. Based on those ideas proposed in the4th point, the idea of DEAcross-evaluation for reference, th e noti ons of m aximum cross-efficiency andminimum cross-efficiency are proposed innovatively, a fuzzy com prehensiveevaluation model is established. T his pape r processes the quant itative data us ingcross-evaluation method (CEM) on the basis of “average cross-efficiency evaluation”,“minimum cross-efficiency evaluation”,“maximum cross-efficiency evaluation”.CEM can work as the index of fuzzy comprehensive evaluation for second evaluation.It provides a m ore objectively and com prehensively m ethod to reflect the realitysystem of construction project selection.